New Maximum Bill For Electricity Users Without Meters In Nigeria. Daily Law Tips (Tip 513) by Onyekachi Umah, Esq., LLM. ACIArb(UK)
The regulator of Nigeria’s electricity industry is the Nigerian Electricity Regulatory Commission (NERC). It regulates every market participants including Generation Companies, Transmission Company, Distribution Companies /Retailers and ancillary services providers. Having frowned at the growing number of unmetered electricity users, who are forced to pay monthly estimated bills, have made an order protecting such users from estimated bills in any part of Nigeria.
First of all, the recent Order issued by NERC applies and affects all the Distribution Companies in Nigeria. The distribution companies are; Abuja Electricity Distribution Plc (AEDC),Benin Electricity Distribution Plc (BEDC), Eko Electricity Distribution Plc (EKEDC), Enugu Electricity Distribution Plc (EEDC), Ibadan Electricity Distribution Plc (IBEDC), Ikeja Electricity Distribution Company (IKEDC), Jos Electricity Distribution Plc (JEDC), Kaduna Electricity Distribution Plc (KNEDC), Kano Electricity Distribution Plc (KEDC), Port Harcourt Electricity Distribution Plc (PHEDC) and Yola Electricity Distribution Company Plc (YEDC).
By “ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020” issued by NERC, signed on 20 February 2020, no person in Nigeria is allowed to pay estimated electricity bill as from 20 February 2020. Estimated billing system has been repealed and abolished in Nigeria. The said Order clearly repealed NERC’s (Methodology for Estimated Billing) Regulations 2012.
The recent order of NERC, mandates DISCOs to identify and meter all electricity users before 30 April 2020. It also set the maximum fee that any unmetered user can be charged in any part of Nigeria, monthly. And, any user that already pays electricity bill that is lower than the maximum rate stated by NERC is also allowed to continue paying such low bill. By the said recent order of NERC, the maximum monthly electricity bill any unmetered user in Nigeria can pay is #200.00 for Residential Customers of Class 1 (lifeline, R1). The Order states varying rates maximum bills depending on location for Residential Customers of Class 2 (R2- single or 3 phase).
As at 4 February 2024, the Business Day reported that across Nigeria most electricity customers are still unmetered and the DISCOs are demanding exorbitant electricity bills from unmetered customers. The big question is, are the DISCOs adhering to the NERC’s “ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020”?
According to Guardian Newspaper on 10 February 2024, NERC has found that the 11 DISCOs are engaging in arbitrary billing of unmetered customers. Hence, NERC will “… deduct N10.5 billion from its the accounts of the 11 Distribution Companies (DisCos) operating in the country over arbitrary billing of unmetered customers.” The deduction will be made by NERC to deter the DISCOs from disobeying NERC orders, including the NERC’s “ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020”.
Furthermore, NERC in its order (with number NERC/2024/004-014) has ordered DisCos to issue to over-charged unmetered customers a Credit Adjustment, for the period from January to September 2023 by the March 2024 billing cycle. Also, the DISCOs are to publish the list of the beneficiaries of the Credit Adjustment in two national dailies and on websites of the DISCOs on or before 31 March 2024.
References:
1. NERC’s ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020. A copy of the said authority from NERC can be downloaded for FREE by clicking this link: NERC+Order+on+Capping+of+Estimated+Bills+in+NESI-24022020 or by visiting the direct website of NERC via the link below: website of NERC on capping of estimated billing.
2. Iniobong Iwok, Seyi John Salau, Sikirat Shehu and Mercy Enoch, “Unmetered Electricity Consumers cry out over Estimated Billing” (Business Day, 4 February 2024) <https://businessday.ng/news/article/unmetered-electricity-consumers-cry-out-over-estimated-billing/?amp=1> accessed 27 March 2024
3. Kingsley Jeremiah, “DISCOs to Pay Consumers 10.5b Over Estimated Billing” (Guardian Newspaper, 10 February 2024) <https://guardian.ng/news/discos-to-pay-consumers-n10-5b-over-estimated-billing/> accessed 27 March 2024.
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Feel free to reach the author, ask questions or make inquiries on this topic or any other legal issues via onyekachi.umah@gmail.com or +2348037665878.
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